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 Venetians greatly increased their share of the spoil by making advantageous purchases from the more needy of the Crusaders. Among the most important of these was the Isle of Candia, which they retained till the middle of the seventeenth century. The idea of a bank took its rise in this city, and an establishment of that nature, simply for the receipt of deposits, is said to have existed in it as soon as the year 1157. But it was not till about a century later that banking, as the term is now understood, began at all to be practised. The merchants of Lombardy and of the south of France began at that time to remit money by bills of exchange and to make profit upon loans. The Italian clergy who had benefices beyond the Alps, found the new method of transmitting money exceedingly convenient; and the system of exacting usury or interest, after experiencing every obstruction from ignorance and bigotry, became a legal part of commerce. In the thirteenth century the government of Venice was entirely republican; but continued wars with Genoa reduced both cities. These wars were all conducted on the seas, and the display of naval strength on both sides seems prodigious, when we reflect on the poor condition of Italy at the present day. Besides these wars for objects of ambition, there were continual jealousies which rose above enlightened views of self-interest, and led to the most disgraceful broils. At the middle of the fourteenth century a battle took place between the rival citizens, in which the Genoese were defeated. Their loss was immense, and in distress and in revenge they gave themselves up to John Visconti, Lord of Milan, then the richest and among the most ambitious of the petty tyrants of Italy, hoping that he would give them the means to reëstablish their fleet and continue the war with the Venetians. He did so, and in another naval engagement, fought in 1354, in the Gulf of Sapienza, the Venetians were entirely defeated. But the Genoese had sacrificed their liberty in their thirst for revenge. Visconti became their master instead of friend. Venice was able to rise above its temporary discomfiture, and during the fifteenth century its fame and power became greater than they had ever been before. In the beginning of the fifteenth century the Venetians captured the town of Padua, and gradually lost their empire of the sea while they acquired possessions on the continent.

Among the most famous of the Italian states at this period was Florence; and its fame was founded, not on arms, but on literature. Like the other Italian cities, however, it owed its first elevation to the commercial industry of its inhabitants. There was a curious division of the Florentine citizens, subsisting about the beginning of the thirteenth century, into companies or arts. These were at first twelve—seven called the greater arts, and five the lesser; but the latter were gradually increased to fourteen. The seven greater arts were those of lawyers and notaries, of dealers in foreign cloth (called sometimes calimala), of bankers or money-*changers, of woolen-drapers, of physicians and druggists, or dealers in silk, and of furriers. The inferior arts were those of retailers of cloth, butchers, smiths, shoemakers, and builders. It was in the thirteenth century that Florence became a republic, and it maintained its independence for two hundred years. In the beginning of the fifteenth century it became peculiarly distinguished by the revival of Grecian literature and the cultivation of the fine arts. Cosmo de Medici, who lived a citizen of Florence at this time, and was known by the name of the Grand Duke of